The executive branch of Brazil has recently assigned the country’s Central Bank and Securities Commission with the responsibility of overseeing the cryptocurrency market. This decision was outlined in a decree that was published on Wednesday.
According to the decree, the Securities Commission will be in charge of regulating assets that are classified as securities. On the other hand, the Central Bank will have the authority to establish the rules that cryptocurrency exchanges must adhere to, which includes obtaining licenses to operate. These measures aim to bring more structure and supervision to the crypto industry in Brazil.
In December 2022, the crypto regulation bill was approved by former Brazilian President Jair Bolsonaro after being passed by both the Chamber of Deputies and the Senate. This legislation introduced a new licensing requirement for “virtual service providers” and introduced penalties for fraud involving virtual assets, which could result in imprisonment for four to six years, in addition to fines.
Brazil has emerged as a prominent crypto hub within the region, with a significant adoption rate of stablecoins and a thriving market where major cryptocurrency companies and protocols like Coinbase, Bitget, and Metamask have established their operations. This move to designate regulatory bodies for overseeing the crypto market further solidifies Brazil’s position as a key player in the cryptocurrency industry.
